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Authorized Agent

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  • 21-08-2011 1:30pm
    #1
    MeerKat17
    Registered Users Posts: 158 ✭✭


    Hi, I was wondering if anyone can give me some advice. I am moving into my brothers house, who lives abroad, and I will be paying rent. As he does not live in the country, he wants me to be the Authorized Agent for the house, and therefore register with the prtb and the revenue and pay tax on the property on a yearly basis.
    I am somewhat concerned with his as I have never before had any dealings with the revenue, and from hearing other peoples horror stories I am afraid to get involved! Will I be able to claim tax back on the property even though I am the authorized agent? Also, I am currently employed but my contract ends in a couple of months and I will have to sign on for a short time. Will this affect my social welfare in any way?

    Any advice would be much appreciated!


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    #2
    El Weirdo
    Registered Users Posts: 11,647 ✭✭✭✭El Weirdo


    MeerKat17 wrote: »
    Hi, I was wondering if anyone can give me some advice. I am moving into my brothers house, who lives abroad, and I will be paying rent. As he does not live in the country, he wants me to be the Authorized Agent for the house, and therefore register with the prtb and the revenue and pay tax on the property on a yearly basis.
    I am somewhat concerned with his as I have never before had any dealings with the revenue, and from hearing other peoples horror stories I am afraid to get involved! Will I be able to claim tax back on the property even though I am the authorized agent? Also, I am currently employed but my contract ends in a couple of months and I will have to sign on for a short time. Will this affect my social welfare in any way?

    Any advice would be much appreciated!
    Hold on... he wants you to pay tax on the rent that you're paying him?


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    #3
    MeerKat17
    Registered Users Posts: 158 ✭✭MeerKat17


    Ya, that's apparently what you have to do if your landlord is a non resident. I pay 750 rent a month but I have to deduct 20% of the rent each month for tax and then somehow send that off to the revenue. Basically each month I will have to put 600 into his bank account and save 150 per month for tax....so much for renting being hassle free!

    My previous landlord was non resident and I never had to deal with any of this, so I'm pretty confused by the whole thing.


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    #4
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    MeerKat17 wrote: »
    I pay 750 rent a month but I have to deduct 20% of the rent each month for tax and then somehow send that off to the revenue.
    This sounds corrent.
    MeerKat17 wrote: »
    My previous landlord was non resident and I never had to deal with any of this, so I'm pretty confused by the whole thing.
    Most likely you paid the money via an agent who kept the tax.


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    #5
    MeerKat17
    Registered Users Posts: 158 ✭✭MeerKat17


    the_syco wrote: »
    This sounds corrent.


    Most likely you paid the money via an agent who kept the tax.

    Yes I did pay directly to an agent for a while, and then changed to pay the landlord directly. But now I will be the Agent, so I am wondering if this will in any way affect my tax credits/social welfare if I agree to do it? Can I still claim tax back on rent even though I am the Agent?

    Has anyone any experience with this?


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    #6
    mebird
    Closed Accounts Posts: 61 ✭✭mebird


    MeerKat17 wrote: »
    Yes I did pay directly to an agent for a while, and then changed to pay the landlord directly. But now I will be the Agent, so I am wondering if this will in any way affect my tax credits/social welfare if I agree to do it? Can I still claim tax back on rent even though I am the Agent?

    Has anyone any experience with this?

    I am all over this.

    Your brother the landlord has two obligations. To register the tenancy and pay tax on the rental income.

    You can register the tenancy on his behalf if you like, no prob. Lazy git can do it himself from abroad though. Just go to www.prtb.ie... I think it is 95 euro. Job done.

    On the subject of Tax, forget about authorised agent / brother and all that. As the landlord is overseas, you, as a tenant, are obliged to deduct 20% of the rent and give it to the revenue. You do not have to do a tax return for the landlord, and it has nothing to do with your own tax return. You fill out a simple form... the R 185 and give the revenue the money. Every tenant of an overseas landlord must do this in the absence of a letting agent.

    You are still free to claim tax back on the full rent.

    By making you the tenant responsible for deducting 20%, the revenue are simply stopping untaxed rent leaving the country.

    Your brother can do a tax return himself and may be able to claim back some or all of the tax you submitted, depending on his other rental income from Ireland or whether has section properties etc.


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    #7
    MeerKat17
    Registered Users Posts: 158 ✭✭MeerKat17


    mebird wrote: »
    I am all over this.

    Your brother the landlord has two obligations. To register the tenancy and pay tax on the rental income.

    You can register the tenancy on his behalf if you like, no prob. Lazy git can do it himself from abroad though. Just go to www.prtb.ie... I think it is 95 euro. Job done.

    On the subject of Tax, forget about authorised agent / brother and all that. As the landlord is overseas, you, as a tenant, are obliged to deduct 20% of the rent and give it to the revenue. You do not have to do a tax return for the landlord, and it has nothing to do with your own tax return. You fill out a simple form... the R 185 and give the revenue the money. Every tenant of an overseas landlord must do this in the absence of a letting agent.

    You are still free to claim tax back on the full rent.

    By making you the tenant responsible for deducting 20%, the revenue are simply stopping untaxed rent leaving the country.

    Your brother can do a tax return himself and may be able to claim back some or all of the tax you submitted, depending on his other rental income from Ireland or whether has section properties etc.

    Thanks mebird! I really appreciate that info! I've never had to do anything like this before so the thought of it has been freaking me out a bit! :)


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    #8
    MeerKat17
    Registered Users Posts: 158 ✭✭MeerKat17


    I will get my brother to register with the prtb, and will fill out the r185 at the end of the year. Do you know where/how I send the money? Call into my local tax office perhaps? Or do I wait for them to post me out a letter about it at the end of the year?


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    #9
    mebird
    Closed Accounts Posts: 61 ✭✭mebird


    MeerKat17 wrote: »
    I will get my brother to register with the prtb, and will fill out the r185 at the end of the year. Do you know where/how I send the money? Call into my local tax office perhaps? Or do I wait for them to post me out a letter about it at the end of the year?

    They will know nothing about the tenancy or the fact the landlord is overseas, so you will receive nothing in the post. ( They are beginning to join the dots and liaise with the PRTB but they are not there yet ! )

    Call to your local tax office with the form and the cheque and get a receipt which you can give to your brother for his tax return.


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